(Bloomberg) -- Macau gaming revenue surged from a year-earlier month that saw casinos shut down for 15 days as Covid-19 began to sweep across the globe. But gaming operators are still seeing a lukewarm recovery as the pandemic continues to make travel difficult for gamblers.
- Gross gaming revenue rose 136% in February to 7.3 billion patacas ($915 million), according to data from the Gaming Inspection & Coordination Bureau. That was worse than the median analyst estimate for a 145% jump.
- Revenue fell 8.9% from the previous month, and is still down 71% from the February 2019 level, before the pandemic hit.
Key Insights
- While the latest result represents the first gain in gaming revenue in 17 months, it was an easy comparison after a record plunge a year earlier as Macau's government suspended casino operations for more than two weeks.
- Macau is still trying to lure mainland China gamblers who are discouraged by a tightened visa application process and virus tests required for crossing the border. The Lunar New Year holiday -- one of the strongest weeks for casinos -- was marred by an outbreak in northern China. Arrivals declined 65% from last year's holiday week as Chinese officials urged citizens to stay home.
- The situation should improve as Macau has gradually been easing quarantine rules on travelers from parts of China that saw winter outbreaks. The rollout of vaccines across Asia may also help the recovery, while the February opening of Sands China Ltd.'s Londoner property could draw in visitors.
Market Performance
- The Bloomberg Intelligence index of Macau casino operators jumped 22% in February amid investor optimism over the sector. The benchmark Hang Seng Index gained 2.5% in the same period. Casino stocks surged the most in three months last Tuesday after the China quarantine rules were lifted.
Get More
- Feb. 24, China Tourism in Macau May Only Reach Pre-Covid Levels in 2H21: Bloomberg Intelligence
- Feb. 23, Macau Casino Operators' Stocks Rally as China Quarantine Lifted
©2021 Bloomberg L.P.
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